Its no secret that the U.S. auto market has become difficult for automakers in these days of $4 gasoline. GM is struggling with mounting losses and even the word bankruptcy has been mentioned by some analysts, although others call these concerns overblown. Nonetheless, besides bringing the Volt and more fuel- efficient cars to the market, and reducing production of SUVs and trucks, GM is apparently considering other cost-cutting ideas.
The Wall Street Journal reported today that the automaker is considering removing some of its brands. Those at most risk appear to be Saab and Saturn. Hummer as we have heard is already up for sale.
Removing brands is a difficult decision for GM as when Oldsmobile was let go, it was expensive and resulted in lost market share.
Another new cost cutting measure for GM could be the loss of 2000 white collar jobs.
While none of this is official, look for some news at GMs August shareholders meeting.
Of course the Chevy Volt will survive any such cuts, as the Chevrolet brand remains strong, and the Volt remains a linchpin of GMs future.
Source (Wall Street Journal )
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